ESR increases stake in Singapore's Sabana REIT

Pan-Asian logistics group ESR has deepened its footprint in Singapore in two transactions to increase its holding in Sabana REIT.

The Warburg Pincus-backed firm said it has purchased a 51.0% interest in the manager of Sabana REIT and a 9.9% interest in the listed vehicle itself from the Vibrant Group, the sponsor of the trust, for a total S$60.9m (€39m).

The transaction would result in ESR holding indirectly about 93.8% in the manager of Sabana REIT, while ESR’s interest in the REIT itself would rise to 21.4%.

As previously reported by IPE Real Assets, ESR over the past year has been progressively lifting its stake in Sabana REIT, which owns industrial properties worth more than S$880m.

Jeffrey Shen and Stuart Gibson, co-founders and co-CEOs of ESR, said: “The investment in Sabana REIT and its manager is in line with ESR’s long-term strategy of investing in a broad range of real estate investment vehicles that would provide us with access to a portfolio of industrial properties in various stages of the property life cycle.”

The transaction would allow ESR to enhance its income diversification and provide further opportunities for future growth, they said, adding that ESR was poised to leverage its Singapore platform as a gateway for expansion into ASEAN, expanding its Asia-Pacific footprint linking North Asia, India and Singapore to Australia.